International Millennium Mining Corp. Reports 2nd Quarter Results

North Vancouver, B.C. - International Millennium Mining Corp. (the “Company”) (TSX-V:IMI) reports its 2nd Quarter 2011 financial statements and MD&A (the “Quarterly Report”) for the 2nd Quarter ended June 30, 2011 (BC Form 51-102F1).  Pursuant to the requirements of National Instrument 54-102, this news release provides a summary of the information contained in the Quarterly Report. 

Summary of 2nd Quarter Ended


Cdn ($)

2nd Quarter Fiscal 2011

2nd Quarter Fiscal 2010

Year to Date
Fiscal 2011

General and Administration Expenditures

$            83,816

$                112,841

$                   186,705

Stock Based Compensation

$                      -

$                            -

$                     18,000

Write Down Mineral Properties

$                      -

$                       650

$                               -

Net Loss for the Period

$         (83,816)

$               (86,866)

$                (186,705)

Net Loss per share

$             (0.00)

$                   (0.00)

$                      (0.00)


 

International Financial Reporting Standards

As at

June 30,
2011

December 31, 2010

Deferred Mineral Property Expenditures

$       3,459,761

$             2,278,031

Total Assets

    3,815,013

   3,193,125

Total Liabilities

     385,346

     460,321

Share Capital

 13,415,084

 12,265,021

Common Shares Outstanding

81,307,256

69,874,367

Fully Diluted Shares Outstanding

103,751,723

103,426,723

Summary Discussion

At June 30, 2011, the Company had a total of 81,307,256 common shares outstanding.

During the quarter ended June 30, 2011 the Company recorded a net loss of $83,816 as compared to $86,866 during the second quarter of fiscal 2010.  The material variances during the periods are as follows:

  1. The Company recorded a $26,625 recovery of future income taxes in the second quarter of fiscal 2010 from flow through shares that were issued in December 2009 as compared to nil recovery in the second quarter of fiscal 2011;
  2. Accounting and legal expenditures decreased by $20,156 in the second quarter of fiscal 2011. In the second quarter of fiscal 2010, the Company incurred over $17,049 for legal fees related to property transactions and litigation, whereas in the second quarter of fiscal 2011 there are no legal expenses;
  3. The Company’s insurance expense increased during the second quarter of fiscal 2011 by $6,016 primarily because the Company acquired a new general liability policy during the second quarter.

 

During the first six months of fiscal 2011 a total of 10,567,889 warrants and broker warrants and 600,000 stock options were exercised, plus 100,000 stock options cancelled, for proceeds of $1,083,063. These proceeds were used to fund the drill program on the Nivloc property and provide working capital.

The Company’s working capital has decreased to a deficit of $186,094 at June 30, 2011. Subsequent to the quarter end:

  1. The Company closed a private placement at $900,000 including: $850,000 of non-flow-through units at $0.20 per unit and $50,000 of flow-through units at $0.25 per unit. Each unit is comprised of one (1) non flow-through or flow-through common share and one (1) non flow-through or one (1) flow-through, non-transferable share purchase warrant, respectively. Each full warrant entitles the holder to purchase an additional share in the capital stock of the Company for a period of two (2) years from the date of issuance, at $0.30 per share in the first year and $0.40 per share in the second year for non-flow through warrants, and at $0.35 per share in the first year and $0.45 per share in the second year for flow through warrants;
  2. a further  60,000 warrants and broker warrants and 250,000 stock options were exercised for gross proceeds of $31,000.

With the exception of a $2,000 USD monthly property payment that will be required for the Simon Property all property payments and contracted exploration expenditures are being paid and executed by joint venture partners.  During fiscal 2009, the Company transferred or eliminated all significant required expenditures and property payments with the Canadian Star acquisition of the High Lake and Electrum Lake, Ontario properties; the continuing Mexico joint ventures; the termination of the Harrison Lake Property joint venture; and, the termination of the Jason Property Agreement.

 

General and Administration

Comparison of the Quarterly results

Overall, there was a 26% decrease in general and administration expenses to $83,816 in the quarter ended June 30, 2011 from $112,841 in the second quarter of fiscal 2010 and no significant change from $84,899 in the first quarter of fiscal 2011. Accounting and legal fees have decreased $20,156 in the second quarter of fiscal 2011 to $11,488 as compared to $31,644 in the second quarter of fiscal 2010 and an increase of $2,234 when compared to the first quarter of fiscal 2011. The primary reason for the decrease is that in 2010 legal fees incurred on legal due diligence with respect to certain Company properties, whereas no such fees incurred in the second quarter of fiscal 2011.   Insurance costs increased in the second quarter of fiscal 2011 to $8,934 compared to $2,918 in the second quarter of fiscal 2010 and from $2,686 in the first quarter of fiscal 2011. The increase is a result of a new general liability policy to cover exploration activities on the Company’s US properties. There was an increase in promotion and marketing costs during the second quarter of fiscal 2011 to $20,923 as compared to $16,646 during the second quarter of fiscal 2010. The increase was a result of increased trade show costs compared to fiscal 2010. 

The Company recorded a net loss of $83,816 during the quarter ended June 30, 2011, as compared to a net loss of $86,866 during the comparable period in fiscal 2010. The primary difference is related to higher legal fees incurred in fiscal 2010 and the future tax recovery recorded in fiscal 2010 whereas there is no recorded tax recovery in 2011.

Comparison of the Six month results to June 30, 2011

During the first six months of fiscal 2011, accounting and legal fees decreased by $34,145 to $20,742 as compared to $54,887 during the comparable period in fiscal 2010. No legal fees were incurred for the six month period in 2011, whereas legal fees were incurred in fiscal 2010 on the litigation on the Simon Property and legal fees incurred on investigation on new properties during fiscal 2010.  Insurance costs increased in the six month period ending June 30, 2011 to $11,622 compared to $5,835 in the comparable period in fiscal 2010. There was an increase in promotion and marketing costs during the first six months of fiscal 2011 to $58,296 as compared to $36,114 during the first six months of fiscal 2010. The increase was a result of increased trade show costs and marketing videos to be prepared during 2011.

The Company recorded $18,000 stock based compensation expense during the six months period ending June 30, 2011 as compared to nil expense during the first six months ending June 30, 2010. 

The Company recorded a net loss of $186,705 for the six months ended June 30, 2011, as compared to a net loss of $197,900 in the quarter ended June 30, 2010. The primary difference results from the higher general and administration costs in fiscal 2010.

At August 29, 2011, the Company had a total of 86,077,256 common shares issued and outstanding, 19,299,296 share purchase warrants outstanding, 475,201 broker’s warrants outstanding and 2,310,000 incentive stock options outstanding.

 

Exploration Programs

Nivloc Mine, Nevada Property

Upon completion of the Nivloc Property acquisition from SRC, the Company initiated a drilling program. To date, 23 holes, totalling approximately 20,000 feet, have been completed. The Company plans to continue the drilling program through the Summer, 2011 which will be funded by the exercise of outstanding warrants and a recently completed private placement.  For further details of this drill program and for released results please view the Company’s complete MD&A on its website at www.immc.ca or at SEDAR www.sedar.ca.

Simon Mine, Nevada Property

The Simon Mine is a former producing polymetallic mine, located in the Walker-Lane Trend south of Reno, Nevada. Shut down in the late 1960s, this project now presents itself as an exploration and development play offering both size and grade potential for long-term mining. Historical records of ore shipped from the 905 drift (89 rail cars) indicate average grades 12 oz Ag, 0.04 oz Au, 9% Pb, 5.7% Zn and 3% Cu. (These historic figures are considered relevant and demonstrate the potential of the property, but need to be verified by the Company). A drilling program began in February, 2010 and was completed in August, 2010. Results were reported for seven drill holes. The Company plans to carry out a phase II drill program sometime in 2012.

Management is focused on precious metal polymetallic projects in the Americas and is working towards building a strong, stable and well financed mineral exploration and small mines mining company.

Concurrently with this news release, the Company is filing its 2nd Quarter Report with the regulatory authorities through SEDAR (www.sedar.com) and has mailed it to shareholders who have requested copies and whose names appear on the Company’s Supplemental List.  A copy of the Quarterly Report is available on the SEDAR website, or will be mailed upon request.  Additional information about International Millennium Mining Corp. and its mineral property interests, including technical reports, is available on the internet at the SEDAR website, namely www.sedar.com.

 

International Millennium Mining Corp. (TSX-V: IMI) is a mineral exploration and development company engaged in acquiring known smaller mine deposits, such as its Nivloc, Nevada silver-gold mine project, in the Americas, with the goal of advancing the properties to the mining stage.  Emerging targets include silver, gold, copper, zinc and lead.   The Company’s common shares trade on the TSX Venture Exchange under the symbol: IMI and on the Frankfurt Exchange under the symbol: L9J.

ON BEHALF OF THE BOARD

    “John A. Versfelt”

John A. Versfelt
President and CEO

Further information about the Company can be found on SEDAR (www.sedar.com) or by contacting Ms. Sheri Barton: 403-217-5830 This email address is being protected from spambots. You need JavaScript enabled to view it. or Mr. John Versfelt, President & CEO of the Company at 604-984-9907.

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Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.  This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, potential mineral recovery processes and other business transactions timing.  Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties.  Actual results may differ materially from those currently anticipated in such statements.